The United States faces a critical decision—will it continue to lead in an evolving global economy, or will outdated policies drive away top talent? Nowhere is this challenge more pressing than in its partnership with India.
For years, Indian professionals have played a crucial role in driving U.S. innovation. Many have utilized the H-1B visa program, which allows American employers to hire “highly skilled” foreign workers on a temporary basis. Others have arrived as students, some returning to India after their studies, while others have settled permanently, contributing to the U.S. economy as citizens.
Currently, over 330,000 Indian students are enrolled in U.S. universities, and Indian professionals accounted for 72.3% of all H-1B visas issued in FY 2023. In the 2023-2024 academic year, India overtook China as the top source of international students in the U.S., reclaiming a position it last held in 2009, according to the latest Open Doors Report on International Educational Exchange.
With Donald J. Trump’s return to the White House and Indian Prime Minister Narendra Modi securing reelection in June 2024—albeit as the leader of a coalition—the stage is set for deeper U.S.-India relations. However, this comes amid internal U.S. debates over the H-1B visa program and the broader significance of immigration to American businesses.
Next week, Modi is scheduled to meet with Trump at the White House. As both countries emphasize economic self-reliance—through the “Made in the USA” and “Make in India” initiatives—the key issue is not whether they can coexist, but rather how they can collaborate for a stronger, interconnected future.
“This is such an important relationship, and it’s such a great opportunity for people-to-people, company-to-company, and government-to-government to make a difference in the world,” stated former U.S. Ambassador to India Eric Garcetti on the Heard in the Corridor Podcast, recorded at a Milken Institute summit in Abu Dhabi.
Rather than a competition, the U.S.-India relationship presents an advantage. Both nations lead in technology, education, and economic growth, and their partnership is essential for shaping the future. Garcetti described this collaboration as “an awakening” for Americans, recognizing India’s cultural and economic importance.
Kenneth I. Juster, Garcetti’s predecessor, echoed this sentiment in an interview with ABP Live, asserting that despite occasional “speed bumps” involving trade, tariffs, and immigration, Trump would ensure that U.S.-India relations remain “very strong.”
Can ‘Made in America’ and ‘Make in India’ Work Together?
With both countries prioritizing domestic economic growth, can the “Made in America” and “Make in India” strategies succeed in parallel? The answer lies in sound policy decisions, investment cooperation, and a mutual commitment to innovation that benefits both nations.
The potential rewards include more resilient supply chains, job creation, and access to expanding markets. India has significantly increased its foreign direct investment (FDI) in the United States, reflecting its growing economic stature. As the world’s fastest-growing major economy, with a population exceeding 1.4 billion, India is now the fifth-largest economy, boasting a GDP of $3.4 trillion. According to the U.S. State Department’s “2024 Investment Climate Statements: India” report, India is expected to surpass Japan and Germany by the early 2030s, securing its place as the world’s third-largest economy.
Indian companies investing in the U.S. are not merely expanding their business footprint; they are actively integrating into local communities. The reverse is also true, with American investments in India playing a similar role. This is not just about corporate social responsibility—it is about building lasting economic and strategic relationships.
However, if the U.S. fails to modernize its immigration and trade policies, top Indian talent that could otherwise contribute to the American economy may choose alternative destinations like Canada, Australia, or the United Kingdom.
Likewise, if India adopts overly protectionist policies, it may discourage crucial U.S. investments that drive innovation and economic expansion. Both countries have exhibited signs of protectionism under various administrations, particularly in sectors like manufacturing and technology. The bipartisan CHIPS and Science Act of 2022, which aims to boost domestic U.S. semiconductor production, along with tighter restrictions on foreign investments, highlight America’s increasing economic nationalism. The challenge is to balance these policies to safeguard economic and national security while fostering a mutually beneficial partnership.
Strengthening the U.S.-India Relationship
To maintain and enhance their partnership, the U.S. and India must take decisive action. The United States must reform its immigration policies to attract and retain top talent, while also crafting investment-friendly policies that encourage cross-border collaboration. Simultaneously, India should continue welcoming foreign investment and fostering knowledge exchange.
Deepening people-to-people ties between the two nations is equally vital. The relationship is not just about government agreements—it thrives on strong connections between the people of both countries.
Garcetti emphasized this, stating, “We already have more Indian students in our higher education institutions than from any other country. This exchange enriches both nations, and we need more Americans to study in India to create a two-way knowledge flow.”
As China makes significant strides in artificial intelligence, the United States must recognize the importance of engaging with India to ensure it does not miss out on opportunities in one of the world’s fastest-growing innovation hubs.
Trump recently pointed to the rapid rise of the Chinese AI app DeepSeek as a “wake-up call” for American technology firms. Meanwhile, India is emerging as a global leader in AI, digital technology, and advanced manufacturing. If the U.S. fails to collaborate effectively, it risks losing a key ally in technological innovation.
“India is moving to the center stage of innovation—where design, engineering, and cutting-edge technology are taking over,” Garcetti remarked. “It’s a testbed for AI applications across industries and languages.”
The Role of Investment and Collaboration
Foreign direct investment between the two nations is no longer a one-way flow. Indian companies are making a tangible impact on the U.S. economy. A prime example is JSW Steel’s investment in Texas, aimed at enhancing steel production and creating jobs.
Garcetti highlighted this, noting, “JSW’s investment is a prime example of how cross-border collaboration works for everyone—strengthening economies while advancing clean energy goals.”
The U.S.-India partnership is about more than trade. It represents a shared vision for the future, built on common values and global leadership.
“If you want your life or your business to be about something consequential, come to India,” Garcetti said. “If you want it to be compelling, come to India. And if you want to navigate the challenges of today’s world, the U.S.-India partnership is the place to start.”
Two decades ago, the devastating 2004 Indian Ocean earthquake and tsunami, which claimed over 200,000 lives, prompted a new era of international cooperation. The “Quad”—comprising the United States, India, Australia, and Japan—was formed in response, showcasing the strength of diplomatic and strategic alliances. However, like any partnership, its success hinges on the commitment of its members.
For Trump, Modi, and the citizens of both nations, the opportunity at hand is immense.
Now is the time for decisive action. The United States and India must reinforce their partnership through investment, policy reforms, and technological cooperation. The future will not be shaped by those who withdraw, but by those who seize the opportunity to innovate together.